Morrisons has recorded faster sales growth than Sainsbury’s for the first time in five years, signaling potential progress in its ongoing turnaround efforts. According to data from market researcher NielsenIQ, Morrisons’ revenue increased by 1.1 percent in the 12 weeks ending October 3, outpacing Sainsbury’s growth of 0.7 percent during the same period.

This marks the first time since early 2021 that Morrisons has outperformed Sainsbury’s in quarterly sales growth. The Bradford-based supermarket last saw stronger growth relative to Sainsbury’s months before its £7 billion acquisition by private equity firm Clayton, Dubilier & Rice in October 2021. Since then, Morrisons has faced challenges including elevated interest costs from its leveraged buyout and intensified competition from German discounters Aldi and Lidl.

Morrisons’ chief executive, Rami Baitieh, stated last month that the company’s strategy was showing “clear evidence” of progress despite ongoing “highly competitive” trading conditions characterized by a price war among leading supermarkets.

Sainsbury’s, the UK’s second-largest supermarket by market share, held informal merger talks with Morrisons between November 2025 and February 2026, which ended without an agreement. Industry data suggests a combined Sainsbury’s-Morrisons entity would command roughly 22.4 percent of the UK grocery market, behind Tesco’s 26.3 percent share. Currently, Sainsbury’s market share stands at 14.1 percent, slightly down from 14.3 percent a year ago, while Morrisons’ share has decreased marginally to 8.3 percent from 8.4 percent.

The grocery sales data also reveals broader sector trends. Tesco led the Big Four grocers in sales growth over the period, up 1.9 percent, while Lidl recorded a notable 6.8 percent increase, raising its market share to 7.9 percent. In contrast, Aldi posted a 0.6 percent decline in sales growth but remains the UK’s fourth-largest grocer following its overtaking of Morrisons in 2022. Asda experienced a 0.5 percent fall in sales over the quarter, though its performance showed signs of recovery in the most recent four weeks with a 0.7 percent sales increase. Asda’s market share decreased slightly to 10.4 percent.

Other retailers also posted gains: Marks & Spencer lifted its share to 4.6 percent from 4.2 percent, aided in part by social media interest in new products, while online grocer Ocado’s share rose to 2.1 percent. Overall, total grocery sales across UK supermarkets grew 1.4 percent in the four weeks to October 3. Shoppers made more frequent visits—up 1.8 percent—but average spending per trip held steady at £18.58, reflecting ongoing caution amid economic concerns.

Analysts note that September is traditionally a challenging month for food retailers, with consumers tending to tighten budgets ahead of higher expected costs later in the year. The milder autumn weather boosted sales of drinks and snacks but may have delayed seasonal spending shifts.

With Morrisons showing signs of sales recovery and adapting to a tough competitive landscape, its future trajectory may influence whether merger discussions with Sainsbury’s resume. Meanwhile, the UK grocery sector continues to navigate shifting consumer behavior amid economic uncertainty.